Cannabis company Tilray acquires majority stake in Medmen in bet on U.S. legalization

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Shares of Canadian cannabis company Tilray jumped nearly 5% in extended trading on Tuesday after announcing it acquired a majority stake in American cannabis retailer Medmen.The investment provides Tilray with a retail foothold in the U.S., should cannabis be legalized at the federal level, while Medmen receives much-needed capital to keep its business afloat. In the deal, Tilray and other investors acquired 75% of Medmen's outstanding secured convertible notes and 65% of its outstanding warrants for $165.8 million. Once converted into stock, Tilray will have a significant stake in Medmen. "What Medmen does for Tilray is that it gives us a great brand. Ultimately, once legalization happens, it gives us the potential to own a great company that we can ultimately take into the rest of the world," said Irwin Simon, Tilray's chairman and CEO, in an interview Tuesday on CNBC's "Closing Bell."While Medmen is a recognized brand, it has struggled with losses in recent years, and its m
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